TIDMBIRG
RNS Number : 5318N
Bank of Ireland Group PLC
01 June 2022
Bank of Ireland Group plc (together with its subsidiaries the
"Group")
Completion of the acquisition of Davy
1 June 2022
The Group announces it has completed the acquisition of J&E
Davy ("Davy"), Ireland's leading provider of wealth management and
capital markets services.
This acquisition significantly enhances the Group's commercial
and strategic objectives. Davy had AUM of c.EUR20 billion as at
December 2021, which when combined with the Group's existing Wealth
& Insurance AUM of c.EUR22.5 billion, provides significant
scale and breadth of proposition. In addition, the acquisition of
Davy enhances the combined services available to the Group's
corporate clients, across both companies, and provides further
opportunities for growth. Along with the KBC Bank Ireland
portfolios transaction, which recently received Competition and
Consumer Protection Commission approval, completion of this
acquisition demonstrates further strategic progress by the
Group.
Davy has been acquired for a final consideration of c.EUR427
million after adjusting for the capital position of Davy as of 1
June 2022. 25% (EUR107 million) of the enterprise value will be
paid two years after completion, subject to Davy shareholders
meeting a number of agreed criteria. In addition, as announced on
22 July 2021, Bank of Ireland will also pay for excess cash which
amounts to c.EUR126 million, following the sale earlier this year
of Davy Global Fund Management and Davy's shareholding in Rize ETF.
A further payment of up to EUR40 million will be payable from 2025,
contingent on future business model performance.
The CET1 capital ratio impact of the acquisition is c.80 basis
points, financed through existing resources. Acquiring Davy will
materially increase the Group's wealth and fee income and the
acquisition is expected to be accretive to earnings in the first
full year of ownership, excluding transaction related payments.
Francesca McDonagh, Group Chief Executive of Bank of Ireland,
commented: "We are delighted to complete this important strategic
acquisition and officially welcome the Davy team and clients to the
Bank of Ireland Group. As the unrivalled Irish leader in wealth
management and capital markets, we are ambitious for the future of
Davy within the Group. The completion of the deal today represents
a fantastic addition to our franchise and business model. Clients
from both organisations will benefit over time from enhanced
product and service offerings from our businesses, two
organisations with long histories of supporting clients across the
personal, business and corporate landscape in Ireland."
Bernard Byrne, Chief Executive of Davy, added: "We really
welcome the completion of the transaction and look forward to
providing the world-class services that our clients expect while
continuing to grow the Davy business from within the Bank of
Ireland Group. This is an exciting milestone for both organisations
and an opportunity for us to materially enhance the support we can
give our clients with their growth plans and ambitions. We are
confident for the future as we work with the Bank on the next phase
of our journey ."
Ends
For further information please contact:
Bank of Ireland
Mark Spain, Group Chief Financial Officer +353 1 2508900 ext
43291
Eamonn Hughes, Chief Sustainability & Investor Relations
Officer +353 (0)87 2026325
Darach O'Leary, Head of Group Investor Relations +353 (0)87
9480650
Damien Garvey, Head of Group External Communications and Public
Affairs +353 (0)86 8314435
Forward Looking Statement
This announcement contains forward-looking statements with
respect to certain of Bank of Ireland Group plc (' BOIG plc') and
its subsidiaries' (collectively the 'Group's') plans and its
current goals and expectations relating to its future financial
condition and performance, the markets in which it operates and its
future capital requirements. These forward-looking statements often
can be identified by the fact that they do not relate only to
historical or current facts. Generally, but not always, words such
as 'may,' 'could,' 'should,' 'will,' 'expect,' 'intend,'
'estimate,' 'anticipate,' 'assume,' 'believe,' 'plan,' 'seek,'
'continue,' 'target,' 'goal,' 'would,' or their negative variations
or similar expressions identify forward-looking statements, but
their absence does not mean that a statement is not
forward-looking.
Examples of forward-looking statements include, among others:
statements regarding the Group's near term and longer term future
capital requirements and ratios, level of ownership by the Irish
Government, loan to deposit ratios, expected impairment charges,
the level of the Group's assets, the Group's financial position,
future income, business strategy, business model, projected costs,
margins, future payment of dividends, estimates of capital
expenditures, discussions with Irish, United Kingdom, European and
other regulators, and plans and objectives for future operations.
Such forward-looking statements are inherently subject to risks and
uncertainties, and hence actual results may differ materially from
those expressed or implied by such forward-looking statements.
Nothing in this announcement should be considered to be a
forecast of future profitability, dividends or financial position
of the Group and none of the information in this announcement is or
is intended to be a profit forecast, dividend forecast or profit
estimate. Any forward-looking statement speaks only as at the date
it is made. The Group does not undertake to release publicly any
revision to these forward-looking statements to reflect events,
circumstances or unanticipated events occurring after the date
hereof.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQFZGGVKMDGZZG
(END) Dow Jones Newswires
June 01, 2022 02:02 ET (06:02 GMT)
Bank Of Ireland (LSE:BIRG)
Historical Stock Chart
From Apr 2024 to May 2024
Bank Of Ireland (LSE:BIRG)
Historical Stock Chart
From May 2023 to May 2024